The impact of economic sanctions on international trade: How do threatened sanctions compare with imposed sanctions?
By S. Afesorgbor. European Journal of Political Economy, 2019
190 citations recorded by the source corpus.
Abstract We draw on established theoretical works in international political economy to compare the empirical effect of threatened and imposed economic sanctions on international trade. To deepen the analysis, we analyze whether there are any differential effects when different instruments of sanctions are employed, as well as whether the effect of sanctions is product specific. To do this, we use the gravity model and recent detailed disaggregated data on sanctions spanning the period 1960–2009. Our results show that the impact of threatened sanctions differs qualitatively and quantitatively from imposed sanctions. Whereas imposed sanctions lead to a decrease in the trade flow between the sender and its target, a threat of sanctions leads to an increase. The positive impact of the threat may be due to economic agents in both the sender and its target resorting to stockpiling prior to the actual imposition of sanctions to minimize any adverse consequences of the sanctions. These differential effects of threatened and imposed sanctions also extend to food and medicinal products, as well as when different instruments of sanctions are employed.
Subfields: Economics and Econometrics
View Paper: https://www.semanticscholar.org/paper/5506156108f5a1f4186313522676a636c6ac2614
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Citations in the corpus
- The global sanctions data base (2020, background): “…include Pape (1997), Hufbauer and Oegg (2003), Caruso (2003), Yang et al. (2004), Hufbauer et al. (2007), Morgan et al. (2009), Crozet and Hinz (2017), Haidar (2017), Draca et al. (2018), Afesorgbor (2018), Ahn and Ludema (2019) and Besedes et al. (2018). lution, among others (see below).”